('Mojag pakorlein In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 $3,150,000 $2,475,000 2,250,000 3, 100, 000 3,100,e00 2023 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year $2,100,000 5,400,000 2,150,000 1,875,000 4,750,000 5,025,000 Westgate recognizes revenue over time according to percentage of completion.
('Mojag pakorlein In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 $3,150,000 $2,475,000 2,250,000 3, 100, 000 3,100,e00 2023 Cost incurred during the year Estimated costs to complete as of year-end Billings during the year Cash collections during the year $2,100,000 5,400,000 2,150,000 1,875,000 4,750,000 5,025,000 Westgate recognizes revenue over time according to percentage of completion.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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explain in Full detail.
Transcribed Image Text:uapiayeu uelow.j
In 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for
$10,000,000. The road was completed in 2023. Information related to the contract is as follows:
2021
2022
$3,150,000 $2,475, 000
2023
Cost incurred during the year
Estimated costs to complete as of year-end
Billings during the year
Cash collections during the year
$2,100,000
5,400,000
2,150, 000
1,875,000
2,250,000
3,100,000
3,100,000
4,750,000
5,025,000
Westgate recognizes revenue over time according to percentage of completion.
Transcribed Image Text:3. Complete the information required below to prepare a partial balance sheet for 2021 and 2022 showing any items related to the
contract. (Do not round intermediate calculations.)
Balance Sheet (Partial)
2021
2022
Current assets:
Accounts receivable
Construction in progress
Less. Billings
Costs and profit in excess of billings
Current liabilities
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